CJ America Inc., a South Korean food and consumer products conglomerate, has purchased the building at 500 S. State College Blvd. for $8.2 million. PHOTO COURTESY LEE & ASSOCIATES COMMERCIAL REAL ESTATE SERVICES

Orange County's office market vacancy rate continued to decline in the fourth quarter of 2012, but it still trails the national average.

The local vacancy rate fell to 13 percent as more than 611,000 square feet of space was taken off the market, according to a report from data provider CoStar Group Inc. The rate was down from 13.4 percent in the previous quarter and marked the ninth time in the last 10 quarters that vacancy declined.

Law firm Latham & Watkins signed Orange County's largest lease when it renewed for 65,825 square feet at 650 Town Center Drive in Costa Mesa. The largest sale came in October, when Yah Investments LLC bought the building at 30700 Rancho Viejo Road in San Juan Capistrano for $19.5 million.

Among Class A properties, the South County submarket is the strongest, with a vacancy rate of 9.9 percent.

South Korean firm buys Fullerton property

The decision by commercial refrigerator manufacturer Kairak in late 2011 to close its Fullerton plant and lay off 58 workers was a blow to the area's industrial property market.

But the 68,466-square-foot facility is now being taken over by a company that's growing.

CJ America Inc., a South Korean food and consumer products conglomerate, has purchased the building at 500 S. State College Blvd. for $8.2 million. The manufacturing facility sits on nearly 7 acres of land, which can accommodate considerable growth.

"It was important to them that they have expansion land in case they need to expand," said Allen Buchanan, a principal with Lee & Associates who represented the seller.

The building includes 5,390 square feet of office space. CJ America, which has its U.S. headquarters in Los Angeles, also leased about 127,000 square feet in a nearby building to serve as a distribution center.

The company plans to do "a tremendous amount of renovation work" on the Fullerton property, Buchanan said, including making exterior improvements and converting the interior to a food production plant.

Buchanan, who specializes in industrial properties, said the property generated considerable interest because, as the market has heated up, the supply of large properties has dwindled.

"There's really not much else available," he said.

Buchanan represented the seller along with colleagues Bob Sattler and Tim Cronin of Lee & Associates.

The buyer was represented by Bret Quinlan, senior vice president with CBRE Inc.

KBS Real Estate Investment Trust III paid $118.1 million for the 678,045-square-foot mixed-use building. The tower, which was built in 1991 and includes more than 68,000 square feet of retail space, is 83 percent occupied.

The firm plans to reconfigure the retail space following the closure of a Neiman Marcus store later this year.

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